Billionaire Barry Sternlicht’s Jaws Acquisition Corp. is nearing a deal to merge with Cano Health in a transaction that would take the operator of senior-care centers public, according to people with knowledge of the matter.
The special purpose acquisition company, or SPAC, has discussed raising $700 million or more in new equity to support a transaction that would value the combined entity at about $4.4 billion, said one of the people, who asked not to be identified because talks the matter is private. An agreement could be announced as soon as this week, the person added. Sternlicht is set to personally invest, according to the person.
A representative for Jaws declined to comment. Cano didn’t immediately respond to requests for comment. A spokesperson for private equity firm InTandem Capital Partners, which owns Miami-based Cano, declined to comment.
Jaws raised $690 million in a May initial public offering and said at the time that it would target companies in growth-oriented industries that don’t compete with Sternlicht’s Starwood Capital Group, which focuses on real estate, lodging, oil and gas and energy infrastructure.
Cano has been fielding takeover bids, PE Hub reported earlier this year. Cano operates primary care centers and supports affiliated medical practices in Florida, Puerto Rico, Texas and Nevada, with plans to enter the California market.